Coca-Cola Japan to pay $150 m more as tax

[Ulhas Joglekar]

Monday 1 May 2000

Coca-Cola Japan to pay $150 m more as tax
TOKYO: US soft drink maker Coca-Cola Co's Japanese unit has to pay an extra
16 billion yen ($150.3 million) in taxes because it underreported earnings
for a seven-year period, newspapers reported Saturday.
Tokyo-based Coca-Cola (Japan) Co. filed a revised tax statement Friday
declaring an additional 45 billion yen ($422.8 million) in income for 1993
to 1999, the Asahi newspaper and other media said.
According to the reports, Coca-Cola Japan revised its declaration after
consultations between Japanese and U.S. national tax authorities to see if
the income deductions it made for royalty payments to its Atlanta-based
parent were correct.
The royalty payments were made for "intangible assets" including the
Coca-Cola trademark and were deducted as expenses.
The reports said Coca-Cola Japan asked for the consultations to head off an
audit by the Tokyo Regional Taxation Bureau.
Coca-Cola Japan and the Tokyo tax office were closed Saturday and nobody
could be reached to comment on the reports.(AP)

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